Can anyone offer a suggestion? I'm working on a short sale with a BofA 1st and PNC 2nd. Initially, PNC demanded $29,000 - more than half the $49,000 balance. Now, they've come down to $19,000. Meanwhile, BofA offered ZERO to PNC on their first two counters. Now, they've come up to $3,000. But that still leaves me with a $16,000 gap. The seller can contribute $1,000 and the buyer will contribute $5,000, which still leaves me with a $10,000 gap. Any ideas how best to bridge that? Also, will BofA be OK with cash contributions from buyer and seller to PNC?

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First, you need to email the BofA negotiator and let them know the story to see if they will be OK withan additional contribution to the 2nd. If the 1st is a Freddie Mac loan, this will not fly. (You can look this up on your own) FM will not allow any more than what is offered on the approval. 2nd, speak with PNC. I dont know what state you are in but if you are in a non deficiency state, this could be the reason for them asking for so much. If a bank has no recourse, they tend to ask for more. If it is recourse, talk to PNC about other options such as a prom. note (they dont really like doing those) Let them know what you stated here that you have parties willing to contribute but the 10K is not something that can be done. If the sellers bank statements support the ability to pay, they may have to step up. This is not the case in most short sales and ask PNC to review the sellers financial situation and maybe you all can meet in the middle. Its all about the negotiations and sometimes you win and sometimes you lose. Good luck OK??
Kelly, thanks for your suggestion. My emails to the BofA negotiator asking this have gone unreturned. This isn't a Fannie or Freddie loan. I'm in a non-deficiency state and the seller declined to sign the statement on PNC's authorization in which they commit to pay back the balance. So if it goes to foreclosure - and NOD has been filed - then PNC wouldn't have recourse. So yes, they are asking for more. I've asked about a promissory note and have been told they won't do that. And quite honestly, the sellers aren't willing to agree to pay much given that we're in a non-recourse state. If it comes to that, they'd prefer to let it go to foreclosure. So I guess we'll do some more back and forth, back and forth and see if we can make it work. If so, great. If not, then it will end up in foreclosure, which is a shame because we have a great buyer who's willing to pay market value and wait.... Oh well.



Kelly Timm said:
First, you need to email the BofA negotiator and let them know the story to see if they will be OK withan additional contribution to the 2nd. If the 1st is a Freddie Mac loan, this will not fly. (You can look this up on your own) FM will not allow any more than what is offered on the approval. 2nd, speak with PNC. I dont know what state you are in but if you are in a non deficiency state, this could be the reason for them asking for so much. If a bank has no recourse, they tend to ask for more. If it is recourse, talk to PNC about other options such as a prom. note (they dont really like doing those) Let them know what you stated here that you have parties willing to contribute but the 10K is not something that can be done. If the sellers bank statements support the ability to pay, they may have to step up. This is not the case in most short sales and ask PNC to review the sellers financial situation and maybe you all can meet in the middle. Its all about the negotiations and sometimes you win and sometimes you lose. Good luck OK??
Im so sorry Shannon... I had a deal with Chase 1st and PNC 2nd. It was non recourse on the both and PNC was asking for 91K (250K 2nd) because since it was non recourse, they had to do a settlement or nothing per the investor guidelines. We actually made it work with Chase allowing 30 K to the 2nd (God knows how long that took but somehow it worked in this case) and the buyers coming in with additional funds at close. I dont think you will get BofA to budge on the 3 K and may have to either find the $$ or let the deal go. If the buyer cant come up with the funds, and you have to get a new buyer, make sure the new buyer knows they will have to contribute to release the 2nd. Another thing you may do is have the homeowner call PNC. I have found that this works sometimes. The bank has more feeling for the seller than the agent making a commission. Good luck!!
I don't understand the disclaimer for this site. If people are asking for help and you intend to help exactly how are you supposed to help if you cannot TELL OTHERS your methods and leave contact information ?
I personally know for a fact most short sales are disasters for the people with the home. I have had success
working with these lenders administratively. I understand what makes and loan and what does not. If you
took out what you thought was a loan, and it was not then you have a claim. If you have a claim concerning the contract then you have an upper hand in negotiating what it is you wish done with the mortgage if that is the case. It's really as simple as that. Most people are brow beaten, threatened and scared to death of being thrown into the street. They do things that aren't rational. Short sales aren't rational. Most people don't understand they have remedies. I understand remedies. I understand step by step what happened with the alleged lender from the time you signed your paperwork till now when your running into difficulties. These alleged lenders don't have your note. 99% of these notes are long gone
and you'd be amazed at how they were created and more than a little upset. Reply to this writing and I'll see what I can do to help you out.

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